Meeting Time: July 01, 2021 at 9:00am HST

Agenda Item

PSLU-67 CC 21-67 SHORT-TERM RENTAL HOME PERMIT CAPS (PSLU-67)

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    Guest User over 3 years ago

    Hello County Officials! Vacation Rentals are our bread and butter. Providing so many of us with jobs and valuable transient and general excise tax dollars for our county. It is my belief that the market will take care of itself. We do not need to cap the rentals. Also, people find ways around permits by word of mouth and Craigslist--better to grant the permits and collect the tax dollars. We clean those units and maintain those units too. Please don't cap them.

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    Guest User over 3 years ago

    I oppose.

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    Guest User over 3 years ago

    Aloha Council members:

    I oppose to lower the caps presented in STRH’s at this time. At least half of these legal permitted homes are owned and run by local residents, like myself, that follow all the strict rules and laws that are attached to the permits.
    My neighbors have supported my business from day one, and I have had 0 complaints since 2013 when I was first granted my permit. Neighbors wrote letters on my behalf last year when the planning department held an impromptu meeting to talk about “Phasing out our permits”. Over a hundred folks, including myself, showed up to take a stand.

    We are local folks running our small businesses, who retain our permit because we have had no complaints!! If folks have a valid complaint they can either call the planning department or put in a request for service online with the property address that is causing a problem in their neighborhood. It’s very simple if folks just follow through.

    I have three part time employees that are all kupuna, and use the money they make to supplement their social security. They are paid 3 x’s as more as at they would make working in any other job, and they appreciate the schedule that is planned in advance. As the permit holder and manager, I’m at the my property twice a week for hours at a time, as I take care of pool and clean up of the yard before my landscaper comes. I clean the property as well. I’m personally there to check in my guests and give them a working tour of the property AND information about how to malama our island. The guest are in immediate contact with me by phone or text if anything arises. I’m not sitting home sipping cocktails as someone mentioned in a past comment. I’m a 20 year resident running my small business that I worked incredibly hard for so I can raise my three children here and hopefully retire at some point in my life. We are a hui of working folks supporting our lives with a viable living wage.

    ANY SMALL BUSINESS THAT IS OWNED BY A LOCAL RESIDENT SHOULD BE CELEBRATED NOT TAKEN AWAY!

    Most of the folks that stay in my vacation rental are families with young kids. Folks like and appreciate having a kid friendly space where they can put their little ones down for a nap, be close, and enjoy the backyard, but being an ear shot away.

    If the neighbors complain to the county, the permit holder will lose his/her permit and not be allowed to renew. The PERMITS are not transferable, so they are not the reason real estate prices are soaring. These are the most regulated vacation rentals and they should be treated with more appreciation. These folks are small business owners paying lots of taxes and following ALL the rules, which there are many.

    Your website says:
    Short-Term Rental Home (STRH)
    Purpose:
    The purpose of the Short-Term Rental Home (STRH) Permit is to facilitate the permitting of short-term rental homes in certain areas, subject to appropriate restrictions and standards; to allow for varied accommodations and experiences for visitors while retaining the character of residential neighborhoods; to allow small businesses to benefit from tourism; and generally to implement land use policies consistent with the County of Maui’s General Plan and the State of Hawaii’s land use laws.

    In case you have not noticed, homes are being sold at over asking prices, and bought with mostly cash with folks that have been able to relocate causing a “pandemic shift” in our population. I know of a few homes that have been bought sight unseen, and are being used as places for all their family and friends to come visit. What about all the second homes that are used as vacation homes where vacation tax is never collected?

    It’s shame that these numbered permits are the low laying fruit that keeps getting picked at when the whole tree is the problem. The planning commission gave the green light for Grand Kamole an upcoming condo-tel, and an expansion of Maui Coast Hotel in the last year.

    If these businesses are using million dollar plus homes to generate tax money for us, then let them, as they are not affordable housing, and never will be and are contributing the largest amount to our affordable housing.

    The permits are limited, nontransferable to a new owner, and cannot be applied for unless the property is owned for 5 years.

    If these are small businesses owned by local people then let them be and let other locals participate, as long as they don’t have complaints.

    What business will be discriminated against next because they sell or are involved with tourists?

    Which tours should go?

    Which restaurants serve too many Mai tai’s outside the hotels and should be phased out?? No really, who's business is on the chopping block next?

    The public needs to be better informed on the subject instead of just blaming over tourism on these finite number of permits that are far below the caps originally. There are about 56,000 homes on Maui and these permits represent less than 1% of the homes!!!!!!

    I kindly ask you to take in consideration all the testimony given on this subject over the last year, which was heavily weighted against making any changes.

    Your MAIN focus should be on creating $200$250K affordable homes and townhomes as this is what our community needs. These homes will not revert back to long- term rentals, as over half are over a million dollars.

    In conclusion, any locally owned business should be celebrated, appreciated, and recognized if they are successful at their endeavor while contributing to our community.

    Mahalo for the opportunity to make a comment.

    Amy Ramos

    -Legally permitted short-term rental owner and manager since 2013.
    -Voter and taxpayer.
    -Mother of three boys born on Maui.
    -Landlord with a long-term tenant of 5 years with no rent increases.

    Pukalani

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    Guest User over 3 years ago

    Aloha and thank you for considering this bill. We desperately need to enact this bill limiting the number of short term rentals on the island. Our infrastructure, our environment and our local people are all suffering the effects of over-tourism and the tourists themselves are suffering the ill effects of too many tourists on island. It is degrading the experience for them as well. We are killing the golden goose.
    There has to be a multipronged approach to controlling this and limiting vacation rentals is an excellent first step. We also need to take strong action to find and penalize illegal rentals. We should also limit new timeshare and timeshare conversions. These are all taking long term rentals off the market which decreases the amount of rental housing available to residents. We should explore offering financial incentives to those landlords who choose to offer long term rentals over short term rentals.
    To manage the over tourism, we should also look into the legal feasibility of limiting the number of rental cars available on island. This would lessen the traffic on the roads, keep tourists closer to their hotels and overall just reduce the stress on our island's infrastructure. I think we need to work to contain tourism to tourist zones and lessen its impact on Maui overall. Let's do what we can to control the numbers arriving, the location of tourism and the impact on our environment. This is an excellent and important first step. Mahalo nui loa!
    Linda Jenkins
    Kahului, Maui

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    Ravi Bugga over 3 years ago

    Aloha Chair Paltin and Members,

    I FULLY SUPPORT the proposal to reduce short term rentals on Maui.

    I’m a member of the W Maui CPAC, but I’m submitting this in my individual capacity, not on behalf of the CPAC.

    Thank you.

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    Guest User over 3 years ago

    Subject: no caps

    To whom it may concern, we pay tremendous amounts of money to Maui and Maui needs our money. I own two condos on Maui. I inherited two from my mother, a long-term resident. However, she could not afford stay there or continue to own the condos because Taxes are exorbitant the HOA fees are also. She truly needed the income to support her very low retirement income.I now Have the responsibility Of maintaining them and cannot afford to keep them in the family if we cannot rent short term. Long-term renters destroy property and do not cover all of the experienses. I would not keep any property on Maui and would be forced to sell both homes if you took away our hard earned short term rental licenses away. It would also dump a lot of homes on the market for people who could not afford to own these vacation homes. They only have one parking space and one bedroom.

    Kind Regards, Debra Moser(Young)

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    jen russo over 3 years ago

    Aloha

    It is understandable that people are pissed about the state of housing on Maui - however blaming legal vacation rentals is not going to solve the issue.

    In 2020 during COVID there was a perfect storm across the nation - creating a “Pandemic Shift” in home sales. There were low interest rates, little inventory and people wanting to move to Hawaii because they can remote work from home. This high demand for homes in Hawaii brought median house sales rates up to over a million on Maui. None of these home sales were to make a STR. You cannot even apply for a permit until you have owned your property for 5 years. This same “Pandemic Shift” had many people moving to Hawaii and Maui and renting long term, further exacerbating the long term rental problem, as many Maui renters can’t compete with mainland incomes, especially during a shut down of tourism.

    With the 220 or so permits that exist for short term rental homes about 50% of them are owned by Maui residents. These are residents that have chosen to go through the legal process, and many of them also provide long term housing on Maui for other residents. These are not bad people, and should be celebrated for their small business and work in the community and financial contributions to the county and housing.

    Maui needs more affordable housing in order to solve our housing crisis. Vacation rentals are already contributing to this solution. Vacation rentals are the biggest source of funding for Maui’s affordable housing fund.

    Maui Affordable Housing Fund Contributions - 2019-2022
    Vacation Rentals have contributed a total of $18.7 million
    Timeshares have contributed a total of $5.9 million
    Homeowners have contributed a total of $5.3 million
    Hotel/Resorts have contributed a total of $4.8 million

    Vacation rentals represent 37% of the county real property tax revenue generating a staggering $142.4 million this year.

    This may surprise many, but Maui’s vacation rentals are in fact the largest contributor to Maui’s affordable housing fund. Since 2018, Maui’s vacation rentals have contributed $18.9 million towards affordable housing, more than all the hotels, all the homeowners and all other businesses COMBINED! In the same time period timeshares, hotels, and homeowner properties together have contributed $16 million. Vacation Rentals include legal permitted short term rental homes, condos, and Bed and Breakfast operations. By law at least 3% of real property tax goes toward the affordable housing fund, and this year the county council voted to have 6% of real property tax appropriated to the fund. Maui’s number one supporter of affordable housing by far is vacation rentals. While much has been said about the impact of vacation rentals, without them there would be dramatically less money available for the County budget and specifically for affordable housing.

    This year alone, short-term rentals will supply Maui County with $142.4 million in real property tax revenue. That is more than 1/3 of all the real property tax revenue collected County wide! As such vacation rentals are the largest source of funding for the Affordable Housing Fund raising $8.6 million this year alone, and have been the biggest source of funding for the last 3 years. The second highest contributor is non-owner occupied properties with $5.8 Million, this tax classification includes long term renters.

    Compared to other visitor related accommodations, vacation rentals are the only segment to have increased their tax contributions this year. Timeshares saw a 7% decrease in their assessed value, and will contribute $2.2 million less than last year. Hotel and Resort classification saw a 19% decrease in assessed value this year resulting in a $3.7 million decrease in funding from last year. Meanwhile, vacation rentals will generate $28.6 million more in property tax revenue this year, a staggering 25% increase from last year!

    The council and administration depend on short-term rental properties to fund our county. Likewise, vacation rentals support Maui’s homeowners as well, by subsidizing lower taxes for residents. Right now Maui homeowners generate $33 million in real property taxes. Without the $142.4 million in taxes generated by vacation rentals, homeowners would have to more than quadruple their taxes to keep the same county budget. Plus, Maui’s vacation rentals also generate local jobs, supporting a network of small businesses like accountants, contractors, landscaping, cleaning, restaurants, shops, and interior design professionals, all of whom in turn spend money sustaining the economic circle.

    While vacation rentals are often criticized, and seldom praised, it’s worth considering the value vacation rentals bring to the table as a whole to fully understand the context of the situation.

    Mahalo for the opportunity to submit testimony.

    Jen Russo
    Executive Director
    Maui Vacation Rental Association

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    Guest User over 3 years ago

    To Whom It May Concertn at the PSLU Committee,

    Regarding Short Term Rental Caps, I would respectfully ask that you NOT lower the current number of operating permits any further than you already have.

    Short terms rentals are a vital part of tourism and our over-all economy.
    The diversity of lodging options is appealing to travelers, and those of us with
    STRH permits pay the same taxes as hotels and condos, and the income we receive benefits the whole community. I hire housekeepers, yard workers, handymen, pool and spa workers, painters, electricians, plumbers, etc. I purchase all my supplies here on Maui, and all of these individuals and businesses benefit from my vacation rental house.

    Your efforts would go a lot further if spent on locating and penalizing UNpermitted rental houses. Again, please do do NOT lower the current number of operating permits at all.

    Mahalo for your attention,
    Pamela Polland
    fully permitted rental host

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    Guest User over 3 years ago

    Aloha
    My name is Kohl Naehu
    I reside on Molokai/ Maui county
    I am a ancestral descendent from the islands of Molokai and Maui and also a owner/ self manager of 2 shot term vacation rentals in a hotel zoned and condominium resort zoned complexes.
    I feel condominium resort and hotel zoned short term vacation rentals should be allowed due to onsite maintenance and local staff that is consistently on premises to better assist and inform vacationers to better insure their safety and to have a higher chance of having repeat renters,
    I know this having to rescue drowning tourist 3-4 times a year when residential short term vacation rentals were allowed, due to investors just number crunching investment properties with no care and knowledge of local AOR ( area of reference) and no concern of the persons renting. So I say zero cap on anything other than hotel zoned and condominium resort zoned properties.
    On Molokai the zero cap on other than these two I mention has been working out perfectly and smooth as possible transitions between renters.

    PS: all land in Hawaii is under allodial title.
    Allodial title definition: always and forever under no lord
    No treaty of annexation between Hawaiian kingdom and the United States of America exist.
    Everyone occupying Hawaii needs to do diligence and research law.
    Mahalo

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    Guest User over 3 years ago

    Subject: Short term rentals in Maui

    Aloha,

    Thank you for taking the time to read this e mail regarding short term rentals in Maui. My family has owned condos in Maui since 1988. I was a flight attendant for 34 years for United Airlines and had the pleasure of bring millions of travelers to Maui. Many visitors could not afford to come to Maui with children unless they were able to rent condos. My family has enjoyed owning and renting the condos to visitors to Maui. We have guests who return every year. My mom eventually moved to Maui and continued to represent the Aloha spirit when she greeted guests in our condos. Tourism is important to Maui, but many cannot afford to stay in Wailea or Kaanapali in $500 per night hotel rooms. I know that I could not have afforded to come to Maui that often if I had to stay in a hotel. Limiting short term rentals in condos would limit the tourism on the island. I hope you will look at the big picture and not just be paid off by the deep pockets of major hotel chains.

    Mahalo,

    Dawn Smith-Theodore, MA, MFT, CEDS
    www.dawntheodore.com
    www.tututhin.com
    www.crosspointedance.com
    https://zencare.co/provider/therapist/dawn-smith-theodore
    818-679-6204

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    Guest User over 3 years ago

    Please don’t limit short term vacation rentals. Availability is very limited it is very hard to find opening as it is too take a vacation. Thanks for your consideration.
    Joann Berk

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    Guest User over 3 years ago

    From: BP5 llc <mauiforme2@gmail.com>
    Sent: Tuesday, June 29, 2021 5:41:40 PM (UTC-10:00) Hawaii
    To: PSLU Committee <PSLU.Committee@mauicounty.us>
    Subject: Short term rentals
    Aloha, platforms such as Airbnb and VRBO should be embraced to draw tourism to the island. We provide a affordable you’re comfortable in a private experience than hotels do. Shutting down small business is not the way to progress.

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    Guest User over 3 years ago

    Subject: Kihei Maui short term rentals

    It’s absurd that you would want to lower the already low number of operating permits further. Maui County depends so much on short term rental tax monies and we oppose any thoughts of lowering the short term rental caps.

    Juan and Laura Colome

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    Guest User over 3 years ago

    Subject: My condo in Kihei
    I have a lovely condo in Kihei, and feel it is such a blessing to me, and I rent it out to help pay for the expenses. A nearby hotel the MAUI COAST was just approved for a HUGE expansion, and my little airbnb condo is a way for people to come and enjoy the island, without impacting it with huge numbers of people like this hotel will bring in. I think its horrible that big business , like this hotel, is driving out small rentals like mine with this latest round of political sabotage. I feel strongly that money speaks and you are not taking care of MAUI but of the big money. Shame on you.
    You should allow current rentals to keep operating. We contribute to the economy and pay our taxes, but do not destroy the LAND with huge amounts of NEW TOURISTS! Lets just allow what is to continue not destroy something that is working for the benefit of BIG BUSINESS !!!
    Sincerely,
    Lee Wilkerson

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    Guest User over 3 years ago

    Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,

    Mahalo for the opportunity to submit testimony,
    We do support caps, we support managed STR home numbers in Maui County, and we support regulation.

    We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.

    The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.

    The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.

    The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.

    We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.

    These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.

    Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.

    If I did not have the ability to have a permit to run a short term rental home, I would leave my home empty when I am not using it. We would no longer be employing the property managers, housekeepers, landscapers, maintenance, and carpenters necessary to run this small business. This home would not be a long term rental, as I still need to use it.

    Thank you for considering my testimony.

    Sincerely,
    Drew Kutcher

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    Guest User over 3 years ago

    Dear Committee Chair Tamara Paltin and Planning and Sustainable Land Use Committee Members,

    Thank you for the opportunity to testify on PLSU 67. We do support caps, we support managed STR home numbers in Maui County, and we support regulation.

    As indicated in the 6/4/21 report from the Planning Department, many folks testified about the caps and the need for more information in order to make an informed decision on what to change them to.

    We want to support the item but when looking at the numbers in the proposed ordinance we just want to make sure that any and all current permits, including the ones that may be under renewal are included in the counts in the cap plus pending applications. We don’t want the cap to be set below the number of people already operating legally.

    The permitted STR homes are a legitimate part of our visitor industry. This ordinance and permitting system has proven to be crucial in how we keep these numbers managed. Right now they equal less than half a percent of Maui’s households.

    The caps that were set for Short term rental permits in each area of the island were not set arbitrarily. They were carefully set after a comprehensive study in 2005 showed where the existing single family homes were being used for short term rental uses. As recommended by the Maui Planning commission, this study should be updated to determine if the existing permitted short term rental homes are meeting the current demand. Because if the caps are set artificially low, then the demand will be met by unpermitted rentals and the State and County will lose out on the significant taxation generated by legal short term rental homes.

    The STRH original caps have already been reduced from 48 to 30 in Hana and from 88 to 55 in Paia Haiku. There certainly is no benefit to lowering these caps any further. The permits that have been granted in the past 3 years have only been granted to families who have owned their Maui homes for many years and where the availability of a short term rental home permit has provided the only means to keep the home in the family after life events have required the property owners to move, or leave their properties to their children after death.

    We also recognize a very real issue that this does not address, which are the second homes in neighborhoods that appear as illegal vacation rentals. This continues to grow as Maui continues to be one of the hottest seasonal homes markets in the nation year after year. We have seen a record year of home prices increase and not a single one of them was sold as a short term rental home.

    These homes can certainly look like they are vacation rentals when used by visiting friends and family, and these visitors staying in these homes contribute to our visitor counts on Maui. However these properties are not paying taxes at the rate legally permitted properties do, and do not pay GE or TAT taxes.

    I live here in Lahaina 20 years and run the local small business in whalers village and these vacation renters help me a lot.

    Rather than eliminating permits while we are still way below our cap, we should be focusing on how to eliminate the illegal vacation rental industry for good.

    Thank you for considering my testimony.

    Sincerely,

    Ha Doan
    368 Front street
    Lahaina, Hi 96761
    808-276-4229

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    Guest User over 3 years ago

    From: john.steinbach@gmail.com <john.steinbach@gmail.com>
    Sent: Tuesday, June 29, 2021 3:54:07 PM (UTC-10:00) Hawaii
    To: PSLU Committee
    Subject: Please lower STR caps!

    Locals are getting squeezed out of there homes!

    Warmest aloha, John & Michelle

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    Guest User over 3 years ago

    From: CECILIA CIRIMELLI <ccirimelli@yahoo.com>
    Sent: Tuesday, June 29, 2021 3:45:42 PM (UTC-10:00) Hawaii
    To: PSLU Committee <PSLU.Committee@mauicounty.us>
    Subject: Airbnb hosting
    It is important for me to host because It is my livelihood and I cannot live on social security of $2,000 a month. Please, please is important to DONOT lower the current number of operating permits.

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    Guest User over 3 years ago

    From: Patricia Bellardo <pbellardo@gmail.com>
    Sent: Tuesday, June 29, 2021 3:23:01 PM (UTC-10:00) Hawaii
    To: PSLU Committee <PSLU.Committee@mauicounty.us>
    Subject: Short Term rentals
    We cannot afford to keep our condo if we can not rent it out.
    Please do not further reduce the number of rentals permitted.
    Maui's financial structure is based on tourism. When you limit that potential condo's will have to be sold.
    The same for homeowners. So many people are in need of making those few extra dollars to make ends meet.
    Please do NOT deny people the right to better themselves through honest efforts.

    Respectfully, P Bellardo
    Papakea Resort
    L-404

    --
    Patricia Bellardo
    "Exterior beauty without the depth of a kind soul is merely decoration."
    Author unknown
    Palo Alto, CA 94301
    (650) 387-5256 - Mobile

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    Guest User over 3 years ago

    I wholeheartedly support a cap on STR homes. Those of us who live on the North Shore have seen how drastically the STRH allowances have affected Paia town and all points east. From traffic all along the Hana Hwy to the crowded streets of Paia. The lack of parking, and restaurants and stores that are so choked with tourists that no resident can or would want to enter because we feel outnumbered by people who lack connection to Hawaii. This is not about prejudice, it is about Kama’aina and other residents feeling displaced in our own home. My direct neighbor purchased the home next door with the explicit intention to STR it. The posted sign went up within days of the purchase. They had a plan from the start to STR a home in a neighborhood they never lived in, next door to people they have never interacted with, and their permit was granted. The lack of connection has changed our neighborhood for the worst. I believe that the excess permitting of STRH has changed the face and flavor of our island. I strongly believe that the “resort areas” is where the tourists should be encouraged to enjoy rather than spreading them all over the island, into every residential community from Wailuku to Hana. Most importantly is the problem of homes lost to residents because the county and some homeowners view homes as cash cows rather than a place to live and possibly rent long term to others for a fair price. Maui did just fine without STRH. Our quality or life has absolutely gone done with the advent of over tourism and STRH that have changed our island life. Please, please, please consider the people whose lives you were elected to serve - the Kama’aina and other residents over short term dollars. Mahalo. - Donna Badome, Haiku